Question on: JAMB Economics - 2018
Given that Y = C + 1, where C = 50 + 0.75 and 1 = N45m, what is the equilibrium level of income?
A
N20m
B
N380m
C
N200m
D
N180m
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Correct Option: B
Here's how to solve for the equilibrium level of income:
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Substitute the value of C into the equation for Y: Y = (50 + 0.75Y) + 45
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Simplify the equation: Y = 95 + 0.75Y
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Rearrange the equation to isolate Y terms: Y - 0.75Y = 95
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Combine like terms: 0. 25Y = 95
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Solve for Y (equilibrium income): Y = 95 / 0.25 Y = 380
Therefore, the equilibrium level of income is N380m
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